Latest Google Hangouts update combines conversations

It even provides an option to control whether or not you send the message via text or Big G’s IM client, which is most likely bad news for cell phone providers out there, as it draws us closer to the day where SMS will become defunct.

If you’d rather keep your IM and text conversations separated, you can still have it that way. All you need to do is dig into the Hangouts menu, change the settings, and you’re good to go.

The update also brings about a more svelte look for Hangouts by changing your list of contacts: they are now separated by “Hangout With” and “Phone Contacts”. MMS and SMS send/receive reliability should also be improved with the latest update.

You can also enjoy a brand spanking new widget for your homescreen, which displays the conversations you most recently had. Video call quality should receive a boost as well.